ICAEW’s Technical Advisory Services has updated its support for practitioners on client engagement letters relating to tax services. The Tax Faculty highlight the key changes.
To support practice firms, ICAEW publishes guidance on what to include in engagement letters, including sample wordings to help firms draft letters for different services.
On 7 April, ICAEW updated much of its guidance on tax-related engagement letters. The key change has been to offer additional support on engagement letters relating to VAT returns following the introduction of the Northern Ireland protocol.
Part 2 L of the guidance, which covers VAT returns, was previously split into two schedules – “A” for clients not subject to Making Tax Digital (MTD) for VAT and “B” for those who operating within MTD for VAT. Part 2 L has now been split into four schedules offering tailored guidance depending on whether the client (MTD participant or not) is established within Great Britain or Northern Ireland
Minor amends have been made in light of legislative changes to guidance on:
- Personal tax (Part 2 E)
- Trusts and estates (Part 2 F)
- Partnership tax (Part 2 G)
- LLP tax return (Part 2 H)
- Corporation tax (Part 2 I)
- Payroll services, without off payroll working (Part 2 J-A)
- Payroll services, including off payroll working (Part 2 J-B)
- Ad hoc tax advisory (Part 2 O)
ICAEW members can view and download all the updated helpheets and guidance at icaew.com/engagementletters.
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ICAEW Know-How from the Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.